Strategic Management in Estonian SMEs

Juhan Teder () and Urve Venesaar ()
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Juhan Teder: School of Economics and Business Administration, Tallinn University of Technology
Urve Venesaar: School of Economics and Business Administration, Tallinn University of Technology

No 126, Working Papers from Tallinn School of Economics and Business Administration, Tallinn University of Technology

Abstract: The research is based on the empirical survey conducted among the members of Estonian Association of SMEs. The study involved goal setting, development and implementation of strategies, competitive advantages striven for, orientation toward growth, and factors hindering enterprisesí development. As a result, characteristics of strategic management in enterprises with different levels of growth orientation (expanding, stable and declining enterprises) as well as those depending on other enterpriseís characteristics (e.g., coincidence of managers and owners; age and size of enterprises, etc) were proposed. The analysis showed the existence of clear relationship between the coincidence of owners and managers and existence of formalised plans, whereby company growth leads to the increasing difference of coincidence of owners and managers and therefore increases the role of strategic plans in the enterprises. Measures taken for strategy formation (e.g. managersí role, cooperation) are supporting factors for positive implementation performance of the intended strategy in expanding firms. The analysis of the factors hindering company growth indicates an increasing need for managersí training in the area of strategic management. National entrepreneurship policy should, in addition to supporting start-up enterprises, pay more attention to supporting the implementation of company growth potential by help of relevant measures.

Keywords: SME, strategic management; strategy implementation, coincidence of managers and owners, growth orientation, growth barriers, entrepreneurship policy. (search for similar items in EconPapers)
JEL-codes: L25 M21 O21 O38 (search for similar items in EconPapers)
Pages: 22
Date: 2005
New Economics Papers: this item is included in nep-bec, nep-ent and nep-tra
Note: We would like to thank Professor Jaak Leimann and Mr. Toomas Piliste (School of Economics and Business Administration, Tallinn University of Technology) for suggestions and support. The research was funded also by SIAR Foundation and the Estonian Science Foundation (Grant 5651).
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Published in Working Papers in Economics, School of Economics and Business Administration,Tallinn University of Technology (TUTWPE), Volume 15, Pages 17-38

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